Cubas central bank now recognizes cryptocurrencies like bitcoin
Summary
In 2020, Western Union – a particularly significant channel for remittances, which had been operating in Cuba for more than 20 years – shuttered all of its 400-plus locations, amid increasingly aggressive Trump-era sanctions. Before the Covid outbreak, Tankha said that some Cubans would turn to underground and somewhat semi-formalized courier services called mulas, where agencies would carry cash to Cuba and distribute it to people on the island. It was this desperate need of cash – against a backdrop of a global pandemic and blocked access to the world economy – which helped foment a rise in crypto adoption in Cuba, say experts. The resolution itself – while a promising sign for Cubans keen to participate in the world economy via bitcoin rails – is hardly a warm embrace of all things crypto. The text includes a healthy dose of skepticism, such as a disclaimer warning citizens about the risks of virtual assets and the ancillary service providers, which the government says operate at the "margins of the banking and financial system."